HP today announced that it has signed a definitive agreement to acquire Exstream Software, LLC, a privately-held leading provider of enterprise software that streamlines the creation and delivery of personalized documents and other communications materials.

Exstream is a portfolio company of American Capital Strategies, Ltd. (Nasdaq: ACAS). Financial terms of the transaction were not disclosed.

Upon completion of the acquisition, Exstream Software will be integrated into the Web Services and Software business unit within the Imaging and Printing Group (IPG) of HP.

“Businesses – whether a bank, healthcare provider or utility company – need to communicate relevant, personalized information to their customers through a broad range of channels,” said David Murphy, senior vice president, Web Services and Software Business, IPG, HP. “We expect that the acquisition of Exstream will allow HP to address a broader set of customers and be a strong leader in the fast-growing document automation market.”

“We are very happy to join with HP to accelerate our ability to help businesses around the world to efficiently develop and deploy personalized communications,” said Richard Troksa, chief executive officer and president, Exstream Software. “The combination of Exstream’s solutions and HP’s print software expertise will provide customers with a more comprehensive approach to delivering reliable and targeted business communications.”

The acquisition is subject to customary closing conditions and is expected to close in the second quarter of HP’s fiscal year 2008.

Ranked among the world’s fastest growing technology companies, Exstream provides enterprise software solutions for businesses around the world to streamline document creation processes and produce higher quality, relevant communications of all types for delivery through print/mail and online channels. Customers in many industries benefit by getting communications to market as much as 85 percent faster, reducing document production costs up to 80 percent and as much as tripling customer response.

About HP

HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $104.3 billion for the four fiscal quarters ended Oct. 31, 2007. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected benefits and costs of the transaction; management plans relating to the transaction; the expected timing of the completion of the transaction; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; risks related to the timing or ultimate completion of the transaction; and other risks that are described in HP’s filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.